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Pension deductions?
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<blockquote data-quote="104Feeder" data-source="post: 2302211" data-attributes="member: 42554"><p>Think of it this way. In WCTPF you have $20,800 being invested in our pension fund since 2013. In 2013 & 2014 you could invest $17,500 in your 401k, and $18,000 in 2015 & 2016, $7000 less than was invested for you in your pension (but of course you were free to invest the 401k in addition to your pension which is actually more than the $20,800 but we will stick with that figure for simplicity). If you do like I do, you have your pension solidly on the less risk side of your investments and invest your pension in higher risk. If you invested outside of that you aren't getting any of the tax benefits of the 401k system. For you, individually, you <strong>may</strong> do very much better being some sort of box slinging investment whiz with $38,800 to invest every year but with 401k particpation rates as they are the vast majority of people would be left without adequate retirement savings when the time came. (besides the fact that you are assuming you would see the $20,800 on top of your pay when it would put you in a higher tax bracket and provide you with significantly less to invest). </p><p></p><p>You should certainly qualify your statement regarding the certainty of your investment returns. </p><p></p><p>So with the pension, you have two pools of money to withdraw from: Pension as early at age 50 in the WCTPF leaving you nearly 10 years for your 401k contributions to grow, or continue working and add $200/month on average as you work past PEER. Then 401k withdrawals at age 59.5 or delay until minimum withdrawals, and finally a third pool of Social Security which should keep you in at least a decent micro-brew for the rest of your life. Keeping in mind that with retirement savings you can only withdraw 4% to keep your principal intact (so $40,000/yr with every $1 million invested) the pension is a great deal in the WCTPF (about $60k year currently, or 85% of our base pay now). </p><p></p><p>The pension isn't going anywhere, and our retirees are thankful and happy that our fund has been well managed and that it alone allows them to live a solid lifestyle in retirement. Until 401k investment is mandatory nationwide, career wide, and job wide our pension should be celebrated and encouraged. </p><p></p><p>Admitting that 688 has a solid pension & payout only underscores that you are completely wrong on your campaign against our pensions. Live more frugally and invest more of your take-home income if you feel you need more retirement income.</p></blockquote><p></p>
[QUOTE="104Feeder, post: 2302211, member: 42554"] Think of it this way. In WCTPF you have $20,800 being invested in our pension fund since 2013. In 2013 & 2014 you could invest $17,500 in your 401k, and $18,000 in 2015 & 2016, $7000 less than was invested for you in your pension (but of course you were free to invest the 401k in addition to your pension which is actually more than the $20,800 but we will stick with that figure for simplicity). If you do like I do, you have your pension solidly on the less risk side of your investments and invest your pension in higher risk. If you invested outside of that you aren't getting any of the tax benefits of the 401k system. For you, individually, you [B]may[/B] do very much better being some sort of box slinging investment whiz with $38,800 to invest every year but with 401k particpation rates as they are the vast majority of people would be left without adequate retirement savings when the time came. (besides the fact that you are assuming you would see the $20,800 on top of your pay when it would put you in a higher tax bracket and provide you with significantly less to invest). You should certainly qualify your statement regarding the certainty of your investment returns. So with the pension, you have two pools of money to withdraw from: Pension as early at age 50 in the WCTPF leaving you nearly 10 years for your 401k contributions to grow, or continue working and add $200/month on average as you work past PEER. Then 401k withdrawals at age 59.5 or delay until minimum withdrawals, and finally a third pool of Social Security which should keep you in at least a decent micro-brew for the rest of your life. Keeping in mind that with retirement savings you can only withdraw 4% to keep your principal intact (so $40,000/yr with every $1 million invested) the pension is a great deal in the WCTPF (about $60k year currently, or 85% of our base pay now). The pension isn't going anywhere, and our retirees are thankful and happy that our fund has been well managed and that it alone allows them to live a solid lifestyle in retirement. Until 401k investment is mandatory nationwide, career wide, and job wide our pension should be celebrated and encouraged. Admitting that 688 has a solid pension & payout only underscores that you are completely wrong on your campaign against our pensions. Live more frugally and invest more of your take-home income if you feel you need more retirement income. [/QUOTE]
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